Advertisement
Advertisement

Natural Gas Price Prediction – Prices Slip on Warm Weather Forecast

By:
David Becker
Published: Jan 4, 2022, 18:53 UTC

Production rises to the second-highest on record in October 2021

Natural Gas Price Prediction – Prices Slip on Warm Weather Forecast

In this article:

Natural gas prices moved lower on Tuesday and were unable to recapture resistance. Warmer than average weather is expected to cover most of the United States for the next 2-weeks. The East Coast of the U.S. is the only area that should experience cooler than normal weather. According to the EIA production of dry natural gas in the U.S. increased year over year in October.

Technical Analysis

On Tuesday, natural gas prices eased after hitting resistance. Short-term resistance is seen near the 10-day moving average at 3.83. Target support is seen near April lows at 2.45. Short-term momentum is positive as the fast stochastic generated a crossover buy signal. Medium-term positive momentum is decelerating as the MACD (moving average convergence divergence) histogram is printing in positive territory with a declining trajectory which points to consolidation.

Production Rose in October

According to the Energy Information Administration, dry natural gas production increased year over year for October for the seventh consecutive month. The preliminary level for dry natural gas production in October 2021 was 2,963 billion cubic feet or 95.6 billion cubic feet per day. This level was the second highest for the month since 1973, when we began tracking dry natural gas production.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

Did you find this article useful?

Advertisement